Egyptian expatriates are greater than residents dwelling overseas—they’re a vital pillar of the nation’s financial system, largely by the remittances they ship again dwelling.
Remittances function a significant supply of earnings for growing nations like Egypt.
By the top of 2023, the variety of Egyptian expats reached 11.09 million in accordance to the Central Company for Public Mobilization and Statistics (CAPMAS). Globally, remittance flows have elevated by three %, amounting to USD 860 billion (EGP 41.55 trillion) in 2023, and are anticipated to develop additional by 3.1 % in 2024, in accordance to the World Financial institution.
Within the first seven months of 2022, Egyptian expatriates despatched dwelling a formidable USD 18.72 billion (EGP 904.34 billion) in remittances, a determine that surpasses the record-breaking USD 9.4 billion (EGP 454.10 billion) earned by the Suez Canal for all the 2022/2023 fiscal 12 months.
This contribution underscores the important position expatriates play in sustaining Egypt’s monetary stability, as their remittances exceed the annual earnings of one of many nation’s most important financial property.
In Might 2023, remittances elevated for the third consecutive month, reaching USD 2.34 billion (EGP 113.04 billion), a notable leap from the earlier month’s figures. By June 2023, remittances had grown by 5.9 % in comparison with the identical interval in 2022, exhibiting a continued upward development of expatriate contributions.
Some of the fast impacts of remittances is on particular person households. The cash despatched dwelling supplies a significant supply of earnings that meets the fundamental wants of thousands and thousands of Egyptian households.
In accordance with a 2024 examine by Science Direct, remittances play a key position in enhancing entry to schooling for households in growing international locations, together with Egypt. These funds assist cowl tuition charges, uniforms, college provides, and transportation, making schooling extra inexpensive. The World Financial institution highlights that remittance-receiving households typically use this monetary assist for college bills, enabling entry to better-quality colleges and studying alternatives, which is very essential for Egyptian households dealing with rising tuition prices.
Moreover, the Worldwide Group for Migration (IOM) highlights that remittances are sometimes invested in dwelling enhancements or small companies, creating jobs and stimulating native economies on the grassroots stage. This ripple impact, ranging from particular person households, boosts market exercise and encourages entrepreneurship, thereby strengthening Egypt’s financial basis.
Past supporting households, remittances play a important macroeconomic position. Egypt, like many different growing nations, depends closely on international trade reserves to handle its steadiness of funds. Remittances assist bolster these reserves, permitting the federal government to stabilize the Egyptian pound and handle import prices.
With excessive inflation and world financial uncertainty, remittances act as a buffer, giving Egypt higher flexibility to climate exterior financial shocks.